Robert Kuhn: A 'politico-strategic' framework for doing business in China

Robert Kuhn’s politico-strategic framework for doing business in China. Our Lee Razo asked Robert Lawrence Kuhn about his politico-strategic framework for doing business in China. This is what he said.

Robert Lawrence Kuhn:
"I spend a good deal of time thinking and working with corporations. I apply what I call a politico-strategic framework for doing business with China. China is unique in the world in that you have this governmental pervasiveness. The CCP (Chinese Communist Party) has taken more and more control of every aspect of Chinese life: North, South, East, West, Central, business education, government, society, military. Everything comes under the party. When you understand that, that the country is under a single way of thinking, and when you know how that works, then you can see how to position the activities of companies to leverage that way of thinking.

This does change every few years. Sometimes it’s a positioning of what you’re doing to conform to the political ways of thinking. Individuals interested in being successful in their own right. They used to take bribes. Corruption is dramatically less. People can’t benefit from taking extra money on the side, or expensive gifts. Morality is no better but their risk is higher. You can benefit them now by helping their careers. If they do something that is in line with the political structure that the country operates under. The way it works is that the party has various divisions. One of the main ones for the major division is the Organisation Department and that controls the careers of everyone in government right down to the very low levels across the country, together with the estate owned enterprises. They’re judged by how they’re conforming to the political structure at the time. If a company can change what they do, even a slight modification, so that it fits that model, then the officials will be predisposed to favour you. You’ll have an advantage.

You know, if you check out of something then you basically have no influence and that was I think the moral of the story of the Tiananmen Square incident with the minister, basically saying you weren't there and that's I think something to think about in all kinds of situations."

Watch the video for the full story.